Why can't politicians be honest about pension freeze?

22/01/2010

Whilst welcoming the the 2.5% increase  in the basic state pension from April 2010 one would wish, when Chancellors make  such announcements, they make quite clear, not only the upside but also the downside of their intent. Pensioners will always respect honesty and fairness in the way they are treated.

 

One of the underlying reasons why the state pension system is quagmired in complexity is the fudge that surrounds the National Insurance system. The contributions to this system were to be ring fenced and to cover only sickness, unemployment benefits and the the state pension. Ring fencing was important in order to distinguish it from general taxation. Yet despite this ring fencing the fund has been used to provide infrastructure support to both Education and the National Health Service.

 

Perhaps one can just accept  that this money  could  also be used to support health and education. However in a recent television programme presented by James May he stated that when the Government had to finance the cost of developing the National Electricity Grid they simply raided the National Insurance fund. If this is true how many other raids have there been on this fund. Is this the reason why British pensions are amongst the lowest in Europe. Surely we have a right to know how Governments have managed this fund on our behalf, I would hate to think that they have turned it into some kind of Ponzi system.

 

Emlyn Lloyd, Swansea

 

 

Thank you for highlighting the NPC report and it came as quite a shock to realize we will be a victim of this "Professional Crime" as I call it. We have tried as a couple to look forward to our future and plan accordingly and taken the advice etc from Government bodies, only to find that once again when it comes to the actual time we are having it frozen and will be very much poorer in the consequence.

 

We think it no better than thieving and making it once more, as with banks, a group of professionals we no longer trust.

 

Brian Howard. Ex Post Office worker
 

 

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